The Ugandan Cabinet allocated Shs18.9995 billion to compensate 1,841 merchants whose shops suffered damage during the flash floods that struck Kampala in late October 2025. Minister for ICT and National Guidance Justine Kasule Lumumba revealed the plan on Tuesday, noting that the funds would serve as voluntary ex-gratia payments. According to Nile Post, this financial aid does not legally bind the state to admit fault for the disaster. The announcement came after a Cabinet session that also reviewed infrastructure fixes for the affected area.
Merchants lost inventory and property when heavy rains inundated shops near Nakivubo Channel and the Owino market area. AllAfrica reported that vendors had protested at the Prime Minister’s office, expressing dissatisfaction with the slow process of verifying beneficiaries and disbursing funds. The flooding primarily hit thirteen arcades and the Owino market, including locations such as Nana Arcade, Totala Building, and Pentagon Plaza. These commercial hubs were submerged as water backed up from blocked drainage outlets.
In addition to the direct compensation, the government granted Shs1 billion to the Federation of Uganda Traders Associations. Nile Post detailed that Shs682.5 million of this sum covers operational costs, while Shs318 million supports the association's revolving fund. This injection aims to stabilize the trade body as it manages the recovery process for its members. The decision reflects an effort to support the collective bargaining power of the affected vendors.
Beyond immediate relief, the Cabinet directed multiple agencies to address the root causes of the flooding. Government investigations found that property developers along Ssebana Kizito and Allen roads had interfered with stormwater systems. AllAfrica noted that silt, garbage, and illegal pavements blocked drainage outlets into Nakivubo Channel. Other factors included undersized culverts and poor waste management by construction firms. These obstructions prevented water from flowing freely, causing it to overflow into nearby buildings.
The Office of the Prime Minister will coordinate the implementation of these repairs. The agency will collaborate with the Ministry of Finance, Kampala Capital City Authority, and the National Environment Management Authority. These joint efforts aim to fix the identified drainage weaknesses and reduce the risk of future flooding in Kampala's central business district.